VP hands over electricity distribution to private investor

Port Harcourt -  The Federal Government on Friday handed over electricity supply to 4Power Consortium Ltd., owners of the Port Harcourt Distribution Company (PHED) in line with its power sector reform.
The Vice President and Chairman of the National Council on Privatization, Alhaji Namadi Sambo, handed over certificates to the company in Port Harcourt.
Sambo, represented by Dr Godknows Igali, the Permanent Secretary of the Federal Ministry of Power, said that the handover held simultaneously across the nation, drew to a conclusion the power reform which began in 1999.
He said that the exercise was a culmination of 14 years of painstaking efforts to liberalise the nation's electricity sector to attain desired economic growth.
"The power sector reform, which began in 1999, continued with the enactment of the Electricity Power Sector Reform Act of 2005, which gave rise to the creation of 18 successor companies.
"The 18 companies from the unbundled Power Holding Company of Nigeria (PHCN) are six Generation, 11 Distribution, and one Transmission companies, respectively.
"The private sector involvement became necessary in order to chart a new course for a sector that had delivered far below minimum expectations of Nigerians.
"The participation of the private sector will bring about more efficient and cost effective power supply, engender private sector investment, improve infrastructure, and create employment for Nigerians.
"The challenges facing the electricity sector in Nigeria are enormous; but we are equally convinced that the opportunities in the sector are enormous.
"The Federal Government is committed to creating an enabling environment that will enable these companies provide quality and cost effective service delivery to the Nigerian electricity consumers," he said.
Sambo said that President Goodluck Jonathan was committed in taking Nigeria out of its "perennial darkness'' within the shortest possible time.
He said that the Federal Government would through the Nigerian Electricity Regulatory Commission (NERC), and the Bureau of Public Enterprises (BPE), monitor the operations of the companies.
The vice president said that companies, which failed to deliver on performance, agreed with the Federal Government would be severely sanctioned.
On welfare package for PHCN workers, Sambo said that government had so far paid 40, 698 workers their severance packages and 14, 700 workers their pension entitlements.
"We were only able to pay pension elements to 14, 700 out of the about 40, 000 workers because there was complications arising from duplication of names, erroneous dates of births, among others.
"To ensure that this money gets to workers, government has moved the funds for payment of the pension into the accounts of a custodian, who together with PENCOM will verify workers claims.''
The Chairman of 4Power Consortium, Mr Augustine Wokocha, assured that the company would provide stable electricity supply to customers.
He called on customers in the PHED zone to support the company in its bid to provide uninterrupted power supply to about 14 million people living in the zone.
PHED covers four states comprising  Bayelsa, Akwa Ibom, Cross Rivers and Rivers states.
Via: NAN